Westpac IQ

Monday re-issue edition: analysis and forecasts for this week's key releases.

Friday edition: analysis and forecasts for this week's key releases.

The housing market might be entering a short-term ‘air pocket’ but greater turbulence does not imply a crash.

Welcome to our Q2 2026 Sustainable Finance Market Update, which also includes a two-minute video highlighting key developments across the sustainable finance landscape. In this edition, we review first-half market activity, highlight notable sustainable finance transactions and explore how sustainability-linked and use-of-proceeds financing are supporting the continued evolution of Australia's Living sector. We also reflect on a quarter that saw the Federal Budget handed down and important regulatory and policy developments for the sustainable finance market.

The movement of digital money across the world is rapidly changing the shape of business and banking.

Mandatory climate-related reporting may be a daunting prospect for organisations reporting under Australia’s sustainability reporting standard AASB S2. To support clients navigating the new reporting requirements, Westpac recently held a webcast event that combined insights from leaders at sustainability consultancy ERM with practical learnings from Westpac’s own mandatory climate reporting journey.

The Australian dollar easily shook off some early softness down to 0.6980 last week, before pushing to a 7wk high of 0.7078 following a weaker-than-expected US jobs report. The Australian dollar starts the week inside what is now a well-defined, moderately rising channel (≈US1.1c wide). The RBA (Tue) and Gov. Bullock testimony (Friday) lead the local calendar this week. Globally we are watching US July CPI & PPI and Fedspeak.

The Australian dollar got what it needed last week - a strong jobs report - but not even a domestically sourced bullish catalyst could help it lock down a 0.70-handle. Rising US bond yields and escalating US-Iran hostilities made it difficult to hold gains. There's something about the 0.7000 level. The Australian dollar is magnetised to it and starts a potentially pivotal and decisive week hugging this level again. Q2 inflation data, RBA Governor Michele Bullock and Assistant Governor Sarah Hunter lead the local calendar. Globally, attention will turn to policy meetings from the US Fed, BoE and BoJ.

The Australian dollar starts the week parked just below 0.7000. Several attempts to settle back above 0.70 last week were met with resistance. Softer-than-expected US inflation initially supported risk assets and lifted the Australian dollar, but enthusiasm faded as the US-Iran conflict escalated and the sell off in technology stocks accelerated. This week is pretty thin in terms of data and event risk beyond local June labour force figures. The fate of AI/semiconductors and the escalating war will be more impactful.